Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs

SMEs have demonstrated significant impact on the overall  economic performance of Malaysia. Nevertheless, it has not reached their full potential. It is vital to comprehend its drivers in order to improve the production of SMEs. Previous studies discovered that organizations with better innovative...

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Main Authors: Nazlina Zakaria, Nor Azimah Chew Abdullah, Rushami Zien Yusoff
Format: Article
Language:English
Published: EconJournals 2016-10-01
Series:International Review of Management and Marketing
Online Access:http://mail.econjournals.com/index.php/irmm/article/view/3203
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author Nazlina Zakaria
Nor Azimah Chew Abdullah
Rushami Zien Yusoff
author_facet Nazlina Zakaria
Nor Azimah Chew Abdullah
Rushami Zien Yusoff
author_sort Nazlina Zakaria
collection DOAJ
description SMEs have demonstrated significant impact on the overall  economic performance of Malaysia. Nevertheless, it has not reached their full potential. It is vital to comprehend its drivers in order to improve the production of SMEs. Previous studies discovered that organizations with better innovative behavior often instigate changes which could influence organizational's performance. Hence, this study seeks to explore the relationship between organizational innovation and organizational performance of Malaysian SMEs. For that reason, this article does not only analyze the concept of organizational innovation and organizational performance, but also the linkage between both concepts  at the end of the findings. Data from SMEs in manufacturing sectors were collected. Data from the respondents were assembled using a total of 321 self-administered questionnaires. The hypotheses were tested using Smart PLS 2.0. As a conclusion, a positive relationship was displayed between organizational innovation and organizational performance. This study will be helpful for future researchers, entrepreneurs and policy makers in grasping the value of organizational innovation towards boosting SMEs performance. Keywords: Organizational Innovation, Organizational Performance, Small and Medium Enterprises (SMEs) JEL Classification: M1
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spelling doaj.art-d95d888e9c0d4da4aa18f2eb5bb4ea462023-02-15T16:17:24ZengEconJournalsInternational Review of Management and Marketing2146-44052016-10-0167SEmpirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEsNazlina ZakariaNor Azimah Chew AbdullahRushami Zien Yusoff SMEs have demonstrated significant impact on the overall  economic performance of Malaysia. Nevertheless, it has not reached their full potential. It is vital to comprehend its drivers in order to improve the production of SMEs. Previous studies discovered that organizations with better innovative behavior often instigate changes which could influence organizational's performance. Hence, this study seeks to explore the relationship between organizational innovation and organizational performance of Malaysian SMEs. For that reason, this article does not only analyze the concept of organizational innovation and organizational performance, but also the linkage between both concepts  at the end of the findings. Data from SMEs in manufacturing sectors were collected. Data from the respondents were assembled using a total of 321 self-administered questionnaires. The hypotheses were tested using Smart PLS 2.0. As a conclusion, a positive relationship was displayed between organizational innovation and organizational performance. This study will be helpful for future researchers, entrepreneurs and policy makers in grasping the value of organizational innovation towards boosting SMEs performance. Keywords: Organizational Innovation, Organizational Performance, Small and Medium Enterprises (SMEs) JEL Classification: M1 http://mail.econjournals.com/index.php/irmm/article/view/3203
spellingShingle Nazlina Zakaria
Nor Azimah Chew Abdullah
Rushami Zien Yusoff
Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
International Review of Management and Marketing
title Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
title_full Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
title_fullStr Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
title_full_unstemmed Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
title_short Empirical Review on Innovation-Performance Linkage in Malaysian Manufacturing SMEs
title_sort empirical review on innovation performance linkage in malaysian manufacturing smes
url http://mail.econjournals.com/index.php/irmm/article/view/3203
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